[final] cnpf asm 2020 report · the health, safety, and financial protection of our workforce...
TRANSCRIPT
#TheFilipinoCan
We will win this fight, because kindness is infectious.
MANAGEMENT’S REPORT
CHRISTOPHER T. POEXECUTIVE CHAIRMAN
ANNUAL STOCKHOLDERS MEETINGJUNE 30, 2020 (VIRTUAL)
THE HEALTH, SAFETY, AND FINANCIAL PROTECTION OF OUR
WORKFORCE REMAIN PARAMOUNT.
Free transportation, accommodation, and meals as needed
Stricter security and safetyprotocols across all worksites
Frontlinerincentives, financial assistance, canned food, and vitamins
Partnership with Reliance United (Unilab) for COVID Infection Control Program
Temperature checks at entrances
Shuttles to and from facilities
Dormitories for select workers
Personal protective equipment for employees
Regular disinfection of worksites
Financial & foodassistance
OUR EMPLOYEES, OUR FRONTLINERS
We are grateful to our teams who have risen to this immense challenge.
"I also have a responsibility to the company and my team members to ensure the supply chain will not be
hampered and will continue to provide its services to the people.”
Manolito Oliquiano, Distribution Center Manager
“We safety officers play a vital role by leading daily sanitation and
ensuring proper use of personal protective equipment.”
Glenn Umali, Plant Safety Officer
WE ARE COMMITTED TO ENSURING CONTINUOUS SUPPLY.
WE HAVE TAKEN MEASURES TO ENSURE BUSINESS CONTINUITY.
Accelerated production to keep
up with demand
Mitigating supply chain disruptions
Operational adjustments in
consideration of safety
MITIGATING POTENTIAL DISRUPTIONS IN THE GLOBAL AND LOCAL
SUPPLY CHAINS
Alignment across wider business ecosystem (suppliers, distributors, etc.)
Alternative suppliers in place
Increased logistics capabilities
Coordination with the Department of Trade and Industry as well as the Inter Agency Task Force
Hired additional merchandisers and warehousing staff
Commissioned new tuna plant in General Santos
Continued automation and expansion of production lines
ACCELERATING PRODUCTION AND EXPANSION PROGRAMS
TO MEET HIGH DEMANDTuna3
Accelerating expansion plans of meat plant in Laguna
Frontliner incentives to encourage employee attendance
Implemented stricter security and safety protocols across all worksites
Revised plant layouts to ensure social distancing
IMPLEMENTING OPERATIONAL
ADJUSTMENTS FOR SAFETY WHILE MAINTAINING
PRODUCTION LEVELS
New shift schedules to reduce personnel per shift
Today, we face the fight of our lives. But our spirit can’t be defeated.
1 million assorted food packs,
including around 260,000 snacks
distributed to 128 hospitals and facilities.
Philippine Disaster Resilience
Foundation’s Project Ugnayan-Damayan
ABS-CBN’s Pantawidng Pag-Ibig
Frontline Feeders Philippines
Various Partnerships
To my surprise, Century Pacific Food, Inc. responded to my email. In no time, boxes upon boxes were being delivered to us! We received goods
that we then distributed to the slum area near our subdivision. After budgeting and repacking the resources we were going to distribute, we
were able to help around 120 families.
Enah Calanog
Calma Sandwich Group received distressed messages from UPLB students stranded inside the campus, asking for help with their daily
food and toiletry needs. So that's when we reached out to friends who can connect us to Century Pacific Food, Inc., who kindly donated so much to our cause. With their help, we were able to help those stranded at UPLB.
Laarni Paredes
#TheFilipinoCan
To grow the business 10% to 15%
a year for the next 10 years, doubling in size every 5 years
THE AMBITION
HOW HAVE WE FARED SO FAR?
DOUBLED TOP LINE IN 5 YEARS
2014 2015 2016 2017 2018 2019
20,43923,325
26,79632,907
37,88540,560
*Figures 2016 onwards are adjusted for IFRS 15, with CAGR based on pre-adjusted revenues.
+7%
2014 2015 2016 2017 2018 2019
1,5921,934
2,656 2,5522,834
3,149
+11%
DOUBLED NET INCOME IN 5 YEARS
Beginning a new 5-year growth cycle once again…
THE AMBITION
2019 2020 2021 2022 2023 2024
STRENGTHENING OUR PLATFORMS
OF GROWTH
GROW BRANDED
DIVERSIFY
INNOVATEWITHIN
EXISTING BUSINESSES
EXPLORE ADJACENT
CATEGORIES
2014 2015 2016 2017 2018 2019
1619 20
2328 31
+12%
BRANDED TO CONTINUE DRIVING GROWTH
*Figures 2016 onwards are adjusted for IFRS 15, with CAGR based on pre-adjusted revenues.Revenue breakdown is based on management report after intersegment eliminations.
MARINE
82%2017 to March 2020 Average
*Source: Nielsen, latest market share as of March 2020
CornedMeat
Market Shares
Emulsified Loaves
STRONG CORE ON THE BACK OF MARKET LEADERSHIP AND TRUSTED BRANDS
81% 45% 36%
46%2017 to March 2020 Average
34%2017 to March 2020 Average
Canned Tuna
2 %
Jan 2016 March 2020*Source: Nielsen
Philippines’ Fastest Growing
Brand in 2019
#2
22%
EMERGING MILK NOW A FORMIDABLE
CHALLENGER
46% 2016 to 2019 Revenue CAGR
Powdered Milk Market Share
Source: Kantar (among all FMCG brands on Consumer Reach Points)
*Source: Nielsen, Euromonitor
Availability as a percentage of total points of sale in the
Philippines
2016 2019
11%21%
Number of countries where
our products are available
2016 2019
58 62
INCREASING AVAILABLITIES DOMESTICALLY AND
INTERNATIONALLY
Restaurants served as a percentage of
total consumer food establishments in
the Philippines
2016 2019
60% 78%
70%
Item 1
30%
30%
of Total Revenue
23%76%
Item 1
24%
24%
37% in 2016 11% in 2016 25% in 2016
2019 2019 2019
CONTINUED DIVERSIFICATION IN BRANDED
*Revenue breakdown is based on management report after intersegment eliminations.
ENTRY INTO COCONUT
Coconut Water2013
Virgin Coconut Oil2015
Desiccated CoconutCoconut Flour
2017
Coconut Milk / Cream2018
Coco Mama2019
A healthier alternative to traditional canned
meat products
First flavor extension of Birch
Tree Fortified
INNOVATING WITHIN EXISTING BUSINESSES
EXPLORING ADJACENT FOOD CATEGORIES
First coconut brand, entering the domestic
coconut market
Organically Via Acquisitions
Presence in canned beans as
well as sauces
POISED TO BENEFIT FROM
EVOLVING CONSUMER
TRENDS
COOKINGAT HOME
HEALTH & SAFETY
DIGITAL CHANNELS
VALUE FOR MONEY
PRODUCTS PRIMARILY FOR HOME USE
RECIPES AND HOW-TO GUIDES
TO PROMOTE USE
ADDED HEALTH BENEFITS IN OUR
EXISTING PRODUCTS
HIGH HEAT PROCESSES AND STRICT QUALITY
STANDARDS
INCREASING PRESENCE IN NON-TRADITIONAL OR
ONLINE CHANNELS
AFFORDABLE AND VALUE-FOR-MONEY PRODUCTS
Marine Meat Milk
STRONG BALANCE
SHEET TO TAKE ADVANTAGE OF OPPORTUNITIES
2.22xCurrent
Ratio
0.62xNet Debt-to-Equity Ratio
0.20xNet Gearing
Ratio
0.73xNet Interest-
Bearing Debt-to-EBITDA Ratio
HEALTHY RATIOS ALLOW FOR INCREASED FINANCIAL
FLEXIBILITY
*As of end 2019.
RESILIENT AMIDST
COVID-19
RESILIENT AMIDST COVID-19
Q1 2019 Q1 2020
9.712.1
+24%
Q1 2019 Q1 2020
7.710.1
+31%
Q1 2019 Q1 2020
0.8 1.0
+31%
HEIGHTENED DEMAND FOR OUR FOOD PRODUCTS AMIDST THE
COVID-19 PANDEMIC
Jan 2020 Feb 2020 Mar 2020
2019 2020
3.1?
We expect to achieve high-teens
growth in 2020.
*Increasing regular dividends from PHP0.10 to PHP0.18 and special dividends from PHP0.08 to PHP0.18.
Increasing cash dividend to
PHP0.36 a sharefrom PHP0.18
previously
28% 24% 24% 25% 23%
40%
Consistent dividends for shareholders
2015 2016 2017 2018 2019
0.20 0.20 0.18 0.18 0.18
*Of previous year’s net income
2020
0.36
ADVANCING OUR SUSTAINABILITY FRAMEWORK
PROTEINdelivery
PEOPLEdevelopment
PLANETpreservation
SUSTAINABILITY HIGHLIGHTS
22 million kilograms of protein
distributed in the Philippines
30+ million free meals provided via Kain Po Program
1 yearplastic neutral
Scaling up use of solar power by
60xby 2021
14,549 jobs supported
3xincrease in
investments for employee
training
PROTEINdelivery
PEOPLEdevelopment
PLANETpreservation
TO NOURISH AND DELIGHT EVERYONE, EVERYDAY, EVERYWHERE THROUGH OUR RESPONSIBLE FOOD BUSINESS.
We commit to innovating healthier, affordable
products that address the nutritional needs of
Filipinos, through sustainable and
responsible manufacturing processes.
We commit to decreasing our water and energy
consumption, efficiently utilizing resources as we
continue to grow our business. We will also
work towards better managing our
environmental impacts by lessening our
greenhouse gas emissions through
renewable energy and actively monitoring our
waste generation.
We commit to building a highly engaged, inclusive,
and competitive workforce to support the
company’s sustainable success. We also target to adopt communities and
increase nutritional education through our
products.
To my Century Pacific family,
Thank you all for your invaluable contribution to the Company and for living up to
our purpose of nourishing and delighting everyone,
everyday, everywhere.
Because of you, I am confident more than ever that while the
sky is gloomy today, we can create a brighter path for our
company and our society tomorrow.
Ricardo S. Po, Sr.Founder & Chairman Emeritus